TECO and Walsin Lihwa form a strategic alliance through a capital increment by issuing new shares2020.11.20
Walsin Lihwa and TECO strengthen cooperation
A new chapter of smart manufacturing, smart industrial town development, and green energy applications
Taipei, November 20 — A board meeting today at Walsin Lihwa resolved to form a strategic alliance with TECO Electric & Machinery Co., Ltd. through an equity swap to further strengthen the long-term partnership and strategic cooperation between the two companies.
Walsin Lihwa — the power cable and wire industry leader in Taiwan — has recently become a designated supplier of wind turbine cables to Mitsubishi Heavy Industries to make a significant advance in the wind power generation market. TECO — one of the world’s top-five motor manufacturers with solid professionalism in electrical engineering — has also recently been awarded an offshore wind power substation turnkey project by the Copenhagen Infrastructure Partners. Both Walsin Lihwa and TECO have entered the supply chain of the wind sites to the west of Changhua to integrate each other’s strengths and provide total solutions to together grasp the business opportunities of wind power generation in Taiwan and elsewhere in Asia Pacific.
Walsin Lihwa has many years of solar power business presence in the US, where the company provides one-stop shopping service ranging from site development, power system planning, construction, operation, and maintenance with annual revenues of more than US$500 million. On the other hand, TECO’s US subsidiary has a proven solution to energy storage as well as a track record of successful implementation with annual sales of approx. US$300 million. The strategic alliance this time will concurrently integrate the two companies’ potential customer bases as well as their systems for energy creation and storage to synergize their individual strengths locally for rapid expansion into new energy markets.
Walsin Lihwa’s leadership in wires for plant construction and TECO’s rigorous development of various smart factory solutions over the past few years can cater for the robust demands resulting from plant construction by Taiwan businesses returning from overseas recently. The two companies are upbeat about their strengthening cooperation as they will be able to engage in cross-selling by sharing existing customers with each other. The demands for electric vehicle charging and power systems, renewable energy grid connection, and power distribution and transmission optimization are expected to grow rapidly, while the two companies’ respective leads in power cables and wires and electrical engineering have accumulated sufficient technology momentum for them to together develop the smart power grid market.
With the longstanding relation, good mutual trust, long-term cooperation between Walsin Lihwa and TECO, this new round of cooperation aims at emerging industry trends and market commonality to integrate both companies’ individual strengths and existing customer resources to expedite business development and share the synergy from the strengthening cooperation.